Stable Currencies Rise as Investors Turn to US Dollar Tokens

03/03/2023 11:34 • Metaverse Matters • 110 views

On March 3, it was reported that after the crisis of Silvergate Capital Corp, a cryptofriendly bank, investors were supporting the circulation of stable currency and turning to tokens equivalent to US dollars as cash substitutes. The activities of the two largest stable currencies, the USDT of Tether and the USDC of Circle, rose in India on Friday morning. According to the pricing data of CoinGecko, the 24-hour trading volume of USDT on March 3 was $43.2 billion, compared with $39.9 billion in the previous day, while the trading volume of USDC jumped from $3.4 billion to $4 billion.

After the Silvergate crisis, investors turned to stable currencies, and the market value of USDT increased by nearly $600 million

Analysis based on this information:

The news that Silvergate Capital Corp, a bank that has been friendly towards cryptocurrencies, has been facing a crisis has led investors to look for alternative options. As a result, they have started to support the circulation of stable currencies and are turning towards tokens equivalent to US dollars as cash substitutes. This trend is becoming more palpable in India, where the activities of the two largest stable currencies, USDT of Tether and USDC of Circle, have been rising.

CoinGecko, a data provider that tracks cryptocurrency prices, has reported that on March 3, the 24-hour trading volume of USDT reached $43.2 billion, compared to the previous day’s figure of $39.9 billion. Similarly, the trading volume of USDC also rose from $3.4 billion to $4 billion. The rise of these stable currencies indicates that investors are seeking a safe haven for their funds, especially in the face of the Silvergate Capital’s crisis.

Stable currencies are a type of cryptocurrency that aims to maintain a stable value by pegging their value to another asset, such as the US dollar. This makes them an attractive option for investors who want to avoid the volatility of other cryptocurrencies, such as Bitcoin or Ethereum. With the rise of stable currencies such as USDT and USDC, investors are now able to hold their digital currencies without being subjected to the risk of fluctuating market value.

In conclusion, the crisis of Silvergate Capital Corp has led to a rise in stable currencies such as USDT and USDC as investors are seeking a safe haven for their funds. These stable currencies offer investors a reliable alternative to traditional cash, as they offer the same value and stability as the US dollar. As a result, these stable currencies are becoming increasingly popular among investors and are likely to continue to grow in popularity in the future.

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